VW emissions scandal

Volkswagen customers in the UK with cars affected by the emissions scandal will not receive compensation, as previously thought.

In December, CEO Matthias Mueller said at a press conference broadcast globally: “We’re working on an effective package for all our customers. There will be an attractive package, let’s call it compensation, for the reduction in value of cars.”

However, it has now been confirmed that UK owners will not be compensated. A spokesman told Auto Express: “There won’t be compensation. All the indications are that residual values are unaffected.” And he claimed that the confusion had been caused by “a slight mistranslation”.

Speaking before the Environment, Food and Rural Affairs Committee, Paul Willis, Managing Director of Volkswagen Group UK, said: “To pay compensation there has to be a loss, and at this stage I see no reason for there to be a loss. Our engineers tell us there will be no difference in fuel consumption or driveability.

“So the only other area is on the question of residual values. I, at the moment, have seen no clear evidence of adverse impact on residual values. So when I say that there is no loss, then there is also no need for compensation.”

Willis, did however, add that in certain cases, a “support package” may be made available to customers in the form of a goodwill gesture – for example if an owner living in a remote area faces a lengthy journey to get the necessary remedial work done on their car.

Yet VW may not be off the hook completely. The UK Government has stated that if evidence of consumers suffering from falling residual values or vehicle performance emerges, VW would be liable to compensate owners.

Transport spokesman Viscount Younger of Leckie said: "The Competition and Markets Authority has not opened a formal investigation but is continuing to assess whether there is evidence of consumer harm."